2006-06-29 02:45:03 · 8 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
its when the price on consumer products continues to slowly rise due to the availability of the product.....take the gas prices for instant...as oil becomes less available to the gas companies, they charge more so that they are able to cover the cost of oil...many times they take advantage and charge more to benefit the company..
2006-06-29 02:53:30 · answer #1 · answered by lost cause 2 · 2⤊ 0⤋
The annual rate that an average basket of products will rise in price over a given time. Known as the RPI or Retail Price Index, a set of everyday products have been selected to measure how much these things go up by over time.
For example, if an average basket of products (defined by the government) rises by 2% over a year, then inflation will be 2%
there are other versions of inflation, some take into account fuel prices, and others take into account the cost of mortgages.
The reasons for the existance of inflation are many and complex, from push inflation in higher wage awards leading to higher consumer prises to pay for these awards, to higher cost of raw materials and products, and alongside this is the amount of money lent into general circulation.
2006-06-29 09:50:51 · answer #2 · answered by kenhallonthenet 5 · 0⤊ 0⤋
Inflation is when there are too many dollars in circulation and to prevent demand from extremely exceeding supply, prices rise. For example lets say that sugar cost $2.00 and there are ten bags of sugar available. Lets say there are 20 people and they all need sugar and they all have $2.00 to buy it. Inflation would increase the price of sugar to decrease the demand.
2006-06-29 09:59:20 · answer #3 · answered by Brandy O 3 · 0⤊ 0⤋
Go to the library (or a book store) and look up a book that is used for beginning students (at secondary school level) for the subject economy (macro economy).
That book will explain to you at a simple level what inflation is.
2006-06-29 10:20:43 · answer #4 · answered by veronica 4 · 0⤊ 0⤋
A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services.
2006-06-29 09:48:55 · answer #5 · answered by JakeS 2 · 0⤊ 0⤋
Its when most expenses in life increase, but your pay check does not. inflation = budgeting of money! :P
2006-06-29 09:52:11 · answer #6 · answered by Lisa C 1 · 0⤊ 0⤋
That when you used to pay 45 cents for a candy bar but now you pay 65 cents.
2006-06-29 09:48:03 · answer #7 · answered by Anonymous · 0⤊ 0⤋
..more payment for same benefits...technically..the rise in price of an asset per annum
2006-06-29 09:54:10 · answer #8 · answered by Gags 1 · 0⤊ 0⤋